China's currency is by most every account undervalued -- perhaps in excess of 25 percent, a fact that makes its goods relatively cheaper than those made elsewhere. So when the country announced a month ago that it would let its exchange rate fluctuate more, it temporarily eased tension with the U.S., where manufacturing groups and some members of Congress were pushing for the Obama administration to take a tougher line with officials in Beijing.Since then, however, the value of the yuan has barely moved against the dollar. -- Howard Schneider
SOURCES: Bloomberg, International Monetary Fund | The Washington Post - July 30, 2010
U.S. takes tougher stance with China Article | The Obama administration has adopted a tougher tone with China in recent weeks as part of a diplomatic balancing act in which the United States welcomes China's rise in some areas but also confronts Beijing when it butts up against American interests.